Investing.com - Gold prices were little changed on Monday, following the release of tepid U.S. data on personal spending and as trading volumes remained thin ahead of the Christmas holiday.
Bearish sentiment remained intact as investors continued to fret over the impact of last week’s decision by the Federal Reserve to begin tapering its stimulus program starting next month.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,201.00 a troy ounce during U.S. morning trade, down 0.2%. Gold prices held in a range between USD1,192.20 a troy ounce and USD1,205.40 a troy ounce.
Futures were likely to find support at USD1,186.00 a troy ounce, the low from December 19 and resistance at USD1,226.00, the high from December 19. The February contract settled 0.85% higher on Friday to end at USD1,203.70 a troy ounce.
The Commerce Department said earlier that U.S. personal spending rose 0.5% last month, in line with expectations, following a 0.4% gain in October. The report also showed personal income rose 0.2% in November, missing expectations for a 0.5% increase, after falling 0.1% in October.
Meanwhile, the core PCE price index inched up by a seasonally adjusted 0.1% in November, in line with expectations, after rising 0.1% in October. The core PCE price index rose at an annualized rate of 1.1% last month, below forecasts for a 1.1% increase, after rising at a rate of 1.1% in October.
The Fed uses core PCE as a tool to help determine whether to raise or lower interest rates, with the aim of keeping inflation at a rate of 2% or below.
The tepid data came after a report on Friday showed that U.S. gross domestic product expanded by 4.1% in the third quarter, above initial estimates for 3.6% growth.
Comex gold prices plunged to USD1,186,00 a troy ounce last Thursday, the lowest since June 28, as investors liquidated long positions after the Fed announced plans to begin tapering its monthly bond-buying program by USD10 billion in January.
Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
Gold is down approximately 29% this year, on track for its first yearly loss in 13 years and the worst since 1981, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, silver for March delivery inched up 0.1% to trade at USD19.47 a troy ounce, while copper futures for March delivery dipped 0.15% to trade at USD3.304 a pound.
Bearish sentiment remained intact as investors continued to fret over the impact of last week’s decision by the Federal Reserve to begin tapering its stimulus program starting next month.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,201.00 a troy ounce during U.S. morning trade, down 0.2%. Gold prices held in a range between USD1,192.20 a troy ounce and USD1,205.40 a troy ounce.
Futures were likely to find support at USD1,186.00 a troy ounce, the low from December 19 and resistance at USD1,226.00, the high from December 19. The February contract settled 0.85% higher on Friday to end at USD1,203.70 a troy ounce.
The Commerce Department said earlier that U.S. personal spending rose 0.5% last month, in line with expectations, following a 0.4% gain in October. The report also showed personal income rose 0.2% in November, missing expectations for a 0.5% increase, after falling 0.1% in October.
Meanwhile, the core PCE price index inched up by a seasonally adjusted 0.1% in November, in line with expectations, after rising 0.1% in October. The core PCE price index rose at an annualized rate of 1.1% last month, below forecasts for a 1.1% increase, after rising at a rate of 1.1% in October.
The Fed uses core PCE as a tool to help determine whether to raise or lower interest rates, with the aim of keeping inflation at a rate of 2% or below.
The tepid data came after a report on Friday showed that U.S. gross domestic product expanded by 4.1% in the third quarter, above initial estimates for 3.6% growth.
Comex gold prices plunged to USD1,186,00 a troy ounce last Thursday, the lowest since June 28, as investors liquidated long positions after the Fed announced plans to begin tapering its monthly bond-buying program by USD10 billion in January.
Some market participants believe the Fed will likely reduce its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
Gold is down approximately 29% this year, on track for its first yearly loss in 13 years and the worst since 1981, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, silver for March delivery inched up 0.1% to trade at USD19.47 a troy ounce, while copper futures for March delivery dipped 0.15% to trade at USD3.304 a pound.